4 Takeaways: Risk Management and Insurance and COVID-19
The Belk College of Business hosted its first 2021 session of the Dean’s Leadership Series on Thursday, Feb. 25, with a conversation on how risk management can help reduce the financial impact of COVID-19.
The session featured a panel of North Carolina-based insurance professionals and focused on several trending topics, including workers compensation, business interruption insurance, financial planning, the impact of the Texas ice storms, and insurance and security.
Here are four takeaways from the event.
1. Make sure you have a plan.
The COVID-19 pandemic has shown the need for having an estate planning document.
“We always tell prospective clients that you have a plan. Whether it’s the one you want or the one that will come in the event something happens, you might as well build the one you want.”
– Tim Flanagan, President, MassMutual Carolinas
2. Keep a personal touch.
Clients often have trouble understanding insurance because what they are purchasing is intangible. In a virtual environment, building that trust can be even more difficult.
“As an agency, that personal touch would be lost if we went 100% virtual instead of meeting face-to-face.”
– Jessica Medlin ’05, Senior Vice President, ECM Solutions
3. Market changing events can have lasting impact.
The recent Texas winter storm power crisis has the potential to be market changing.
“You’re looking at billions of dollars. … This is going to impact rates across the country I think in a relatively short period of time. This is potentially going to shift insurance costs for everyone.”
– Aubie Knight, CEO, Independent Insurance Agents of North Carolina (IIANC)
4. The pandemic is far from over.
The pandemic continues to significantly affect small business and their incomes. Business interruption claims and lawsuits against insurance companies are ongoing due to COVID-19. Many businesses are challenging their insurance policies over the language used in their loss of income clauses. This also takes a toll on insurance companies, with litigation costs and ultimately determining if they are liable to cover these losses. “It’s really kind of a wait-and-see. It will depend on how these court cases really play out, how and when the COVID vaccinations happen, the government stimulus and how the economy fares in the next nine to 18 months.”
– Darin Stafford ’94, Chief Financial Officer, AmWINS Group, Inc.
The session was moderated by Thomas Marshall, senior lecturer in the Risk Management and Insurance program, which is offered through Belk College’s Department of Finance.
The Dean’s Leadership Series aims to give back to the Charlotte business community and celebrate the college’s 50th anniversary.
The next Dean’s Leadership Series will be on Thursday, April 15. The session will focus on entrepreneurship in Charlotte, featuring a conversation with the founders of two of Charlotte’s billion dollar startups.
